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Hello, this question was asked under the Qamp;A but I cannot read the answer and I'm not sure the question has been answered completely.

Hello, this question was asked under the Q&A but I cannot read the answer and I'm not sure the question has been answered completely. Any help with this would be greatly appreciated, I'm very stuck! Thanks

A Hypochondriac in the Grossman model: Hypochondria or 'illness anxiety disorder' is a psychosomatic condition that is the result of an inaccurate perception of the condition of body or mind despite the absence of an actual medical condition. An individual suffering from hypochondriasis is known as a hypochondriac. Hypochondriacs become unduly alarmed about any physical or psychological symptoms they detect, no matter how minor the symptom may be, and are convinced that they have, or are about to be diagnosed with, a serious illness.

Imagine an individual in the Grossman model who suddenly develops hypochondriasis.

a) How would this affect her optimal level of health? Explain your answer in the light of the three roles that health plays in the model. Use appropriate diagrams to facilitate your explanation.

b) Now imagine this hypochondriac suddenly wins a mega jackpot lottery of $1 million. How does this exogenous income shock change decisions about her health status?

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